Keppel DC REIT has completed the acquisition of the remaining 51% stake in two hyperscale data centres, Keppel DC Singapore 7 and 8, securing full ownership of these AI-ready assets. The move strengthens its position in Singapore’s digital infrastructure market and reflects a strategic shift toward deeper operational control and long-term value creation.
The acquisition was executed via a call option from its sponsor, Keppel Corporation, for up to S$8.4 million, subject to completion adjustments. While the transaction value may seem modest, the underlying assets are anything but. The data centres are valued at S$1.03 billion, with independent valuations averaging S$1.056 billion, underscoring their significance in the REIT’s portfolio.
With full ownership, Keppel DC REIT gains complete control over leasing strategies, asset management, and future development. Both facilities are built to hyperscale specifications and are AI-ready, positioning them to meet rising demand from cloud providers, enterprise clients, and artificial intelligence workloads. This consolidation enhances income stability and unlocks strategic flexibility, especially as digital transformation accelerates across Southeast Asia.
The REIT manager has stated that the acquisition will not materially impact net asset value (NAV) or distribution per unit (DPU) for FY2025. This signals a disciplined approach to capital deployment, balancing growth with yield preservation. The deal is expected to be funded through a mix of debt and internal cash reserves.
Singapore remains a key hub for data centre investment, thanks to its robust connectivity, regulatory stability, and strategic location. Keppel DC REIT’s latest move aligns with broader trends in the REIT sector, where trusts are evolving from passive landlords into active infrastructure platforms supporting the digital economy.
For investors, this acquisition (Keppel DC Singapore 7 and Keppel DC Singapore 8) represents more than just portfolio expansion. It’s a calculated consolidation of high-value assets, increased strategic control, and a long-term commitment to infrastructure that powers the future. As demand for hyperscale and AI-ready facilities grows, Keppel DC REIT is well-positioned to capture upside in a rapidly digitizing region.